The EIU view

The centre-right coalition has only a slim majority since it ejected the far-right The Finns in June 2017, but we expect it to survive till the next election. Support for the opposition Social Democratic Party has recently risen and may increase further in the election run-up. Fiscal austerity and economic growth will continue to be prioritised in the medium term. After GDP growth of 2.8% in 2017, we estimate a slowdown to 2.3% in 2018 and forecast an average of 2% in 2019-22.

High housing debt poses financial risk
The uptick in household indebtedness is an increasing cause of worry for the Finnish banking system. We expect the state to monitor the developments in the housing market.